Previously a person who was advised by an “advisor” who was not authorised by the Financial Conduct Authority to transfer their pension into a SIPP and to thereafter invest in toxic assets which later failed had no entitlement to compensation.
Indeed, the landmark judgment in the case of Adams -v- Carey Pensions in May 2020 confirmed this to be the case. However, that decision is being challenged and the appeal is likely to be heard by the Court of Appeal in Spring 2021.
In the meantime, people who have lost money where they have been advised by a non-authorised advisor and where their SIPP company has failed can pursue a claim to the Financial Services Compensation Scheme (FSCS).
Recently the FSCS have carried out a lengthy thematic review and, following the review, they have been issuing decisions in favour of claimants to award compensation.
Therefore, even if a person has been advised by a non-qualified advisor to “invest” in unregulated assets which have now failed or are about to fail and their SIPP company has gone into liquidation/administration, there is a strong likelihood that an award of compensation will be made.